The Sleazy PR Campaign to Prevent the IRS From Making Your Taxes Simpler

[eridani]

http://www.slate.com/blogs/moneybox/2014/04/14/turbotax_maker_s_sleazy_pr_campaign_intuit_doesn_t_want_the_irs_to_make.html

Theoretically, it should be far easier for Americans with simple finances to file their tax returns. Instead of making tax filers putz around W-2s and tax prep software, the IRS could electronically prepopulate their paperwork with the information it already receives from banks and employers, and tell filers how much they owe. If the final figure looked about right, you’d have the option to file. As Matt Yglesias wrote here last year, the whole process could be a five-minute snap.

Theoretically. But for years now, Intuit, the maker of TurboTax, has fought tooth and nail to prevent automatic tax filing from becoming a reality, lobbying against bipartisan legislation to introduce it with the help of a powerful tech industry trade group and conservative anti-taxers like Grover Norquist. Intuit and its competitors in online tax prep don’t want the government cutting its market share. The tax-crusaders want to ensure that paying the government remains as much of a painful, resentment-generating slog as ever. And thus a potent alliance has been born.

Today, ProPublica, which published a great report on this subject last tax season, explains that the Computer & Communications Industry Association, which counts Intuit as a member, has been sponsoring an astroturf campaign to convince Congress that easyfiling would end up hurting the poor. A public relations firm working on the trade group’s behalf has been luring unsuspecting spokespeople to join its cause—reaching out to them without mentioning any lobbying ties.

[pkdu]

1. If this dies overnight...please post again in the am.....this is disgusting!! Nt

[brer cat]

2. It is not just the online tax prep industry that is opposed.

H&R Block, Liberty and the other services want to keep their share too, and they seem to specialize in screwing the lower income people who use them. It is unbelievable what they charge for simple returns, and then they push the rapid refunds which cost the taxpayer a bundle. It would be a huge service for IRS to prepopulate most returns; after all, they have the information already in their system.

[TreasonousBastard]

3. I don't see the problem...

What am I missing?

I have actually used several of the recommended tax services at the IRS site and paid no fees to file very simple returns. The services were easier than filing a paper return-- they ask you questions, you answer, and they calculate your tax. At the time, the IRS insisted they had a percentage of no-fee programs, but each one decided the criteria individually. I think I used Tax Slayer the most in those days.

I can't see the IRS doing it alone, since it doesn't know everything about your dependents, if you moved, your health, any benefits received or other things that can affect even low-wage workers.

With all the justifiable complaints about taxes, I just don't see this as being a real problem.

[Liberal Lolita]

4. Sure it may be free, but...

You have to give all your info to those free tax sites.
I wonder how much they sell your personal info for. They have to get something for their "service".
The IRS has my info already. I don't want to share it with anyone else.

[jeff47]

5. Actually, they do know about many of those things

You should be filing a new W-4 if your dependents change - it changes your withholding.

You'd probably also file a new W-4 for moving - you have to be moving a significant distance for work for it to be deductible. Which likely means either a new job or a new state, and thus a new W-4. The IRS won't know what you paid, but they'd know you moved.

Heck, your bank is filing a form listing the mortgage interest paid.

Sure, they're not going to know everything about every return. But the set of things that they would not already know is pretty small for most people in most years.